UBank Term Deposit Account

UBank Term Deposit Account

Min. Opening Deposit

1,000

Account Keeping Fee

0.00
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A great fixed rate term deposit that could boost your savings.

  • Competitive interest rate 2.75% p.a. for 6 months
  • Invest from $1,000 to $2 million
  • Choose from a 1, 3, 4, 6, 9 or 12 month term
  • Receive a loyalty bonus for reinvesting

Product details

The UBank term deposit doesn't charge any unnecessary fees. If you decide to reinvest your term deposit, you will receive a 0.10% bonus rate on top of the standard interest rate.

UBank is currently offering one of the most competitive rates around, though the longest term it's offering is up to 12 months.

Product Name
UBank Term Deposit Account
1 month interest rate
2.10%
3 month interest rate
2.70%
4 month interest rate
2.70%
6 month interest rate
2.75%
9 month interest rate
2.75%
12 month interest rate
2.75%
Min Deposit
$1,000
Max Deposit
$2,000,000
Minimum Age Requirement
18
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What are the features of the UBank Term Deposit Account?

While just about all Australian financial institutions offer their customers fixed rate term deposit accounts for their savings, you will notice differences in the features. Look at those that UBank is providing against what you get from other banks before making a choice in a term deposit account:

$0 Account keeping fees

You are not charged any monthly account keeping fees on your UBank Term Deposit account.

Small minimum investment of $1,000

You must be able to deposit at least $1,000 to start your term deposit.

Competitive interest rates offered

The interest rates applied to your balance are competitive and fixed over the length of the term. The rate amount increases with longer terms, but you will get the best return on your investment by choosing the six month term.

You're rewarded for your loyalty

If you roll over the entirety of your term deposit balance or more into a new term when it matures, you will receive a loyalty interest bonus of 0.10% per annum (p.a.) on top of the standard rate.

How is my interest calculated and paid?

Interest is calculated on your balance on a daily basis. For terms of less than one year, the interest will be paid to you at maturity. If you choose a one year term, you can opt for monthly payments or one payment at maturity.

Can be linked to any Australian everyday account

Called your “chosen bank account” by UBank, your linked account must be held by an Australian financial institution and be in the exact same name as the UBank Term Deposit. This account will be used to transfer funds and accept interest payments if you choose the monthly payment option.

Joint term deposit available

You are permitted to have a joint account holder for your term deposit.

Terms from 1 to 12 months

You can choose a one, three, four, six, or nine month term, or invest your savings for a full year. There are no long term investments available.

Backed by the Government Guarantee

UBank not only is a part of the Government Financial Claims Scheme, which guarantees deposits of up to $250,000, they are backed by NAB. This does mean that the funds counted towards the Financial Claims Scheme include the total you have in NAB accounts as well as with UBank.

Rules around withdrawing term deposit early

If you need to make an early withdrawal of your funds, you must let UBank know no less than 31 days prior. Interest will be adjusted by an amount that is deemed reasonable by UBank to cover its cost in maintaining your account. The amount requested to be withdrawn must be in increments of $500, and if a partial withdrawal results in a balance of less than $1,000 the account will be closed and all money transferred into your linked bank account.

Reinvestment options

You are permitted to provide UBank with maturity instructions at any point during your terms, but if they are not received within two days of the maturity date, the funds will be rolled into a new account with the same terms and prevailing interest rate at that time. You then have seven days to make any necessary changes to your new term deposit.

Available for personal use and SMSFs

This account is meant for personal purpose only or for a trustee of a SMSF.

Launch term deposit calculator

Pros

  • Low minimum investment of $1,000
  • $0 Account keeping fees
  • Wide ranges of terms from 1 month to 1 year
  • Receive a loyalty bonus for reinvesting

Cons

  • 31 days advance notice required in case of withdrawing funds before maturity

How do I apply for the UBank Term Deposit Account?

If you appreciate the benefits of the UBank Term Deposit Account, you can visit UBank website and begin filling in your online application.

Eligibility to apply online

Before beginning, ensure that you are able to meet their eligibility requirements:

  • Minimum age. Applicants must be at least 18 years old.
  • Residency requirements. You must be an Australian resident for tax purposes living at an Australian residential address.
  • Depository requirements. A minimum of $1,000 is required to open a UBank Term Deposit Account.

Documentation to apply online

UBank also recommends having the following documentation readily available to assist in filling out the application:

  • Tax file number. Providing your tax file number (TFN) will help in ensuring that your interest earnings are taxed at the correct rate.
  • Identification. Your driver’s licence number if available will help to prove your identity. You can also use your passport or Medicare card.
  • Chosen bank account. The details of a separate Australian banking account in the same name for you to be able to transfer your deposit as well as receive any interest payments.

What happens after I submit the application?

Once you have submitted your application online, UBank will contact you via email with the details of your new term deposit so that you may initiate your first deposit.

What are the current UBank term deposit interest rates?

  • 1 Month Term Deposit Earns 2.10% p.a.
  • 3 Month Term Deposit Earns 2.70% p.a.
  • 4 Month Term Deposit Earns 2.70% p.a.
  • 6 Month Term Deposit Earns 2.75% p.a.
  • 9 Month Term Deposit Earns 2.75% p.a.
  • 12 Month Term Deposit Earns 2.75% p.a.

Customers who roll their term deposit over at the end of the term will be rewarded with a loyalty bonus of 0.10% p.a.

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26 Responses

  1. Default Gravatar
    PeterMay 18, 2018

    Is the interest is simple or compound?

    • finder Customer Care
      JhezelynMay 19, 2018Staff

      Hello Peter,

      Thank you for your comment.

      Banks such as UBank can get you compound interest in your savings. To get the most benefit of compound interest, just deposit as much as you can into your account and restrict the number of withdrawals you make. The more money that is in your account at the end of the month, the more interest you will earn, and the more interest you earn means you will earn even more interest the following month. Even if you can’t deposit any extra money into your account, your balance will continue to grow as your interest compounds each month.

      Please refer to our guide that explains how compound interest works.

      Regards,
      Jhezelyn

  2. Default Gravatar
    aelianMay 15, 2018

    If i want to open a Term Deposit in joint names with my wife, do we have to go into a branch? If yes, do I have to make an appointment or can we just walk in and set a TD up?

    • finder Customer Care
      JhezelynMay 15, 2018Staff

      Hello Aelian,

      Thank you for your comment.

      You can actually apply online through Ubank’s website or walk in to their branch without making an appointment. You are required to fill out a form for application.

      Regards,
      Jhezelyn

  3. Default Gravatar
    joniMarch 7, 2018

    I want to open 2 uBank term deposit accounts for my son and daughter – they are under 18 which the details say age requirement is 18. Can I still open accounts in their names as their parent / guardian or does it have to be in my name?

    • finder Customer Care
      JoelMarch 8, 2018Staff

      Hi Joni,

      Thanks for leaving a question on finder.

      Unfortunately, UBank Term Deposit Account requires that applicants must be at least 18 years old. You may want to check out Bank Australia Term Deposit as it does not require a minimum age to apply.

      Alternatively, you can check this page for other savings options for kids.

      Cheers,
      Joel

  4. Default Gravatar
    normOctober 6, 2017

    How do i open a term deposit account with U Bank
    I am an existing NAB customer

    • Default Gravatar
      GruOctober 6, 2017

      Hello Norm,

      Thank you for your question.

      To apply for the UBank Term Deposit Account, you can visit UBank website and begin filling in your online application.

      Eligibility to apply online

      Before beginning, ensure that you are able to meet their eligibility requirements:

      * Minimum age. Applicants must be at least 18 years old.
      * Residency requirements. You must be an Australian resident for tax purposes living at an Australian residential address.
      * Depository requirements. A minimum of $1,000 is required to open a UBank Term Deposit Account.
      * Documentation to apply online

      UBank also recommends having the following documentation readily available to assist in filling out the application:
      * Tax file number. Providing your tax file number (TFN) will help in ensuring that your interest earnings are taxed at the correct rate.
      * Identification. Your driver’s licence number if available will help to prove your identity. You can also use your passport or Medicare card.
      * Chosen bank account. The details of a separate Australian banking account in the same name for you to be able to transfer your deposit as well as receive any interest payments.

      Once you have submitted your application online, UBank will contact you via email with the details of your new term deposit so that you may initiate your first deposit.

      Hope this helped.

      Cheers,
      Gru

  5. Default Gravatar
    StuartSeptember 27, 2017

    Say I have in excess of $10,000 .. not much more .. for one to five years … should i open SEVERAL term deposits? .. in different funds? .. or the $10,000+ in one account for one to five years?

    • Default Gravatar
      GruSeptember 28, 2017

      Hello Stuart.

      Thank you for your query.

      Please note that finder is an Australian comparison website and general information service.​
      As we do not represent any company we feature on our pages, we can only offer you general advice.

      You would ultimately have to make the decision in terms of what you should do with your $10,000. Both options you presented are feasible.
      You should assess if you would need access to any of the amounts you would be investing in the near future or if you would want to spread the funds out in different terms. It is all up to you.

      Cheers,
      Gru

  6. Default Gravatar
    GraemeAugust 24, 2017

    Does UBank provide an income stream product similar to an Allocated pension

    • finder Customer Care
      MayAugust 25, 2017Staff

      Hi Graeme,

      Thanks for reaching out.

      If you’re referring to if UBank has products designed for people with an income stream from a superannuation fund, yes they do. You may like to check UBank USaver SMSF here and UBank Term Deposit SMSF on this page.

      Cheers,
      May

  7. Default Gravatar
    FionaJuly 19, 2017

    I would like to specify some maturity instructions on my term deposit. It matures in Sept, but I would like to do it now. How do I go about this?
    Thank you

    • finder Customer Care
      HaroldJuly 20, 2017Staff

      Hi Fiona,

      Thank you for your inquiry.

      You are permitted to provide UBank with maturity instructions at any point during your terms. It would be nice to contact the bank directly to discuss your available options.

      I hope this information has helped.

      Cheers,
      Harold

  8. Default Gravatar
    MarshalMarch 1, 2017

    Can I open a term deposit for 7 months and if so at what rate?

    • finder Customer Care
      LouMarch 1, 2017Staff

      Hi Marshal,

      Thanks for your question.

      For UBank, and with most banks, you can open a term deposit account in a specified number of months as listed above. Your closest option may be a 6-month term deposit with 2.71% p.a. interest.

      You may compare other term deposit accounts here.

      Cheers,
      Anndy

  9. Default Gravatar
    JANICEJanuary 20, 2017

    I have a client, I am a Mortgage Broker, who has a Ubank Term Deposit that matured on 12/1/2017 and auto rolled over for another to 12/02/2017 as she wasn’t aware it was maturing due to Xmas , being away etc.
    We have a Home Loan settling 20/02/2017 that the $100k funds are to be used for , But a customer service officer told her today that as she requested TODAY to terminate Term deposit, that she must wait 31 days, from today , before she will get the money? Not on 12/02/2017? when it will mature?
    I am ex NAB staff and know that we will break term Deposits, losing the small amount of interest from break date till when maturing, under different circumstances where the money was needed.
    Any chance this Customer Service Officer may be wrong?

    • finder Customer Care
      MayJanuary 24, 2017Staff

      Hi Janice,

      Thank you for contacting finder.com.au – a financial comparison website and general information service designed to help consumers make better decisions. We do not represent UBank or any company we feature on our pages.

      No, the customer service officer from UBank is correct. As stated on the UBank’s T&Cs relevant to their Term Deposit product, if the account holder wishes to withdraw any funds from their term deposit before the end of its fixed term, they must give UBank at least 31 days’ prior notice.

      Cheers,
      May

  10. Default Gravatar
    natJanuary 4, 2017

    HI, Just wondering if i can open a Term Deposit for my 4 year old son with Ubank?

    • finder Customer Care
      LouJanuary 4, 2017Staff

      Hi Nat,

      Thanks for your question.

      Unfortunately, UBank Term Deposit Account requires that applicants must be at least 18 years old. You may want to check out Bank Australia Term Deposit as it does not require a minimum age to apply.

      Alternatively, you can check this page for other savings options for kids.

      Cheers,
      Anndy

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